How that Harvey Nick's trickle-down ripple will work
Interesting insight in to economics on the BBC Bristol website:
The priciest item instore is an Alligator Clutch bag, by Kara Ross, at £3,170.
It’s undoubtedly expensive. But there are those who say Harvey Nichols will spread ripples of wealth across Bristol.
And there are those – obviously not featured in the BBC report because with only the two universities it’s hard to come by a real economist in Bristol isn’t it? – who say this is a tsunami of bollocks.
The simple fact is that at least £1,000 of the cost of that bag goes straight across the Atlantic to Kara Ross who’s based in New York not Bristol.
Another £1,000 goes on Harvey Nichols’ overheads – that’s rent to the Bristol Alliance (from Birmingham), admin costs to run the plc based in London, marketing costs (again all based in London) and salaries across the whole group – most of whom are based in London. Then a small percentage – unlikely to be even 5% – goes to some Bristol-based shop assistants.
The remaining £1,000-odd pounds goes directly into the pockets of shareholders who tend to be global corporations.
So by selling a three grand bag about fifty quid will actually be rippling through Bristol if we’re lucky. Big deal.
Meanwhile in London, is that the sound of wealthy shareholders and senior managers rubbing their hands together with glee rippling through the city?
From what I hear, the jobs won’t be trickling down as much as their glossy brochures like to make out either, as many of the shops are just relocating staff from other stores in the region which are credit-crunching.
No doubt that’ll mean even more traffic trickling down the M32 though.
Still this is what Barbara Janke enthusiastically applauded as Progress.
And what’s this about a Zombie Parade?
Great post.
Cabot Circus is more about the global economy than the local.
Exactly. Cabot Circus is all about international chain stores and international brands. How many of those have their HQs in Bristol, or even in the UK for that matter? Oh, Chandos Deli.
Elsewhere in Bristol, Gloucester Road springs to mind, there are thousands of local cafes, restaurants and retailers using local contractors and suppliers. They will undoubtedly suffer as Cabot Circus sucks wealth out of the local economy.
Even in its construction the benefits to the local economy have been limited, not least by the fact that such a high proportion of the construction workers are from abroad and a fair proportion of their earnings will end up pushing up prices in eastern Europe and beyond.
This is all pretty revealing:
“While politicians aspire to the votes of “Mondeo man”, Cabot Circus is aiming to attract “Leigh Woods woman” – a description of an elusive shopper who lives in one of Bristol’s affluent suburbs and rarely visits in the city centre.”
http://www.thisisbristol.co.uk/cabotcircus/news/Vision-expressed/article-340026-detail/article.html
In other words: Screw you, peasants – we’re takin’ over!
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BB, I really can’t understand how you could possibly expect local BBC journalists and researchers to show any economic savvy.
Recently, Guido has amused himself by pointing out inaccuracies on Newsnight relating to their reporting of the stock exchanges, which included creating a market which doesn’t exist; they reported AIG’s share price on the futures market had halved – there is no open futures market for shares – and, announcing that the Dow had closed 171 points up – it had in fact closed 171 points down.
If this is indicative of economic reporting on the BBC’s flagship news and current affairs programme, then what hope for an understanding of basic economic principles on their local services…
… yet more reasons – if any where needed – for not owning an idiot box.
The news coverage of the opening last night spoke to several, quite a few, people outside the shop. They all said EXACTLY the same thing. It followed this rough guide: “Wow I think it’s brilliant! Sadly I can’t afford anything in there but WOW I think it’s brilliant!”
The Zombie parade (sic) to welcome Cabot Circus takes place this Saturday 27 September, meeting 11am near the bandstand in Castle Park, and stumbling off soon after. Wear white, wear whatever you want, who knows what a zombie looks like?
After todays opening ceremony at Cabot, that saw some thousands converge on the opening event, one could say sadly that zombies look just like anyone else.
Funnily enough the Death Brigade and a few others were considering doing a zombie walk today. Says something about Cabot Circus that it illicits… pretty much the same idea in lots of people.
Why do people have to canstantly moan?
The simple fact is Bristol needed a new shopping centre, if you have ever been to Birmingham or Manchester there shopping centres made the Galleries look pathetic.
I just hate the constant negative thoughts that SOME Bristolians seem to have!
Bristol cant win, every one has moaned for years saying the city centre shops are rubbish know they have bulit something amazing and people are moaning that the money is going to go back to Bristol.
Off course the profit is not going back to Bristol what an absurd comment, do you think the local Tescos gives its profit back to Bristol?
Just enjoy it and stop the constant moaning!
Well done Robert for being the first to trot out the new Carboot Circus PR line – Stop moaning!
So no more criticism,
no more debate,
no more thought,
just enjoy the munificence of those who know best.
That may be good enough for you Robert but it doesn’t cut any ice here.
Robert, you say they have built something amazing but admit that the profit does not go back to Bristol!! Does not sound amazing to me!
Personally I dont think I’m moaning at all .
Its all about better alternatives. There is a perfectly rational, reasonable case against this way of developing Bristol. Carboot Circus wont make us any happier, healthier, fairer, greener or more secure in our lives.
A lot of you have got too much time on your hands. Robert’s right, the place is better than it was. I’ll probably only use it two or three times a year but I’ll enjoy it when I do. I won’t be sitting on my arse using words like “munificence” which I have never heard anyone ever use away from this forum.
How sad you all are! We get a fantastic destination shopping centre which shows that Bristol is really on the up, with great shops that will draw people in from all over the South West and Wales and all you can do is whinge that the money goes to the companies that have spent millions putting their shops there. Why not just enjoy the fact that we’ve got a great shopping centre with some fab new places to eat and drink and stop the whinging.
Mike, you just don’t get it, do you?
We get a fantastic blogger who shows that Bristol is really on the slide, with great posts to draw people in from all over the South West and Wales and all you can do is whinge that people are free to express their opinions despite the best efforts of the PR professionals. Why not just enjoy the fact that we’ve got a great blog with some fab new posts and comments and stop the whinging?
What’s the difference between a ‘destination shopping centre’ and a normal ‘shopping centre’?
A “destination shopping centre” is one that generates masses of car travel as people swarm in from all over the west country and beyond, whereas a normal shopping centre just serves the needs of local people.
Bristol International Airport is relishing the extra flights as jaded shoppers are drawn from across Europe. It’s all great for the business and sod the environment. In fact why not call Bristol a “Green Capital” and get even more tourists flying in?
“How sad you all are! We get a fantastic destination shopping centre which shows that Bristol is really on the up, with great shops that will draw people in from all over the South West and Wales and all you can do is whinge that the money goes to the companies that have spent millions putting their shops there. Why not just enjoy the fact that we’ve got a great shopping centre with some fab new places to eat and drink and stop the whinging.”
See, there it is again, the ‘whinging’ line being used against people complaining on the web, i smell astroturf (and who says ‘destination shopping centre’ in real life?).
In fairness, I think Mike meant that the shopping centre is a fantastic destination, rather than being a destination shopping centre that is fantastic.
I’m not going to moan about Cabot Circus, I’m just tired of the undeserved hype. It really isn’t *that* special.
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